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In this video tutorial, the instructor covers how to create and modify lists in Microsoft Word 2016. They explain how to create bulleted and numbered lists, as well as how to modify lists using tab stops. To create a bulleted list, the instructor demonstrates selecting the lines, going to the Home tab, and clicking the bullet button to add circular black bullets. They also show how to customize the bullets by expanding the library options. This includes selecting different types of bullets from the library or defining a new bullet based on personal preferences.